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Email this11:55 am
December 2, 2021
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I purchased a non-registered GIC in my name only with a one year term at Tangerine Bank a few months ago. I know that I can phone Tangerine to convert the GIC to be jointly held with my spouse. Is there a time limit for me to do this, or can the conversion be done at any time before the maturity date?
12:30 pm
October 21, 2013
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I don't know the answer, but I am very interested to know this is even possible. I would have guessed it was not. I have one at Meridian that I'd like to convert.
1:23 pm
January 17, 2021
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I have done this at TD within the last year. So yes it can be done.
1:51 pm
January 7, 2020
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I have done this with a GIC purchased at Tangerine-- although it was essentially co-incident with the purchase. My understanding is that although the GIC can be purchased online, a phone call must be made to make it joint
I'm now interested to know if it is the same story at Oaken
2:05 pm
February 7, 2019
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mustang said
I have done this with a GIC purchased at Tangerine-- although it was essentially co-incident with the purchase. My understanding is that although the GIC can be purchased online, a phone call must be made to make it joint
I'm now interested to know if it is the same story at Oaken
It's done online at point of purchase at Oaken and Hubert. No call required. Just need 'jointers' to be members ...
I wish Tangerine would lighten up and modernize.
This is one big reason why we don't have GIC's at Tangerine where phone service is slow and an unnecessary inconvenience...
| CGO |
2:42 pm
December 2, 2021
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Over the years I have purchased many jointly-owned GICs online at Oaken and Hubert without having to make a phone call, as cgouimet has described.
However, if I convert my current Tangerine GIC to joint ownership at this time then our jointly-owned deposits at Tangerine will be over the CDIC limit of $100,000. If I keep the GIC in my name only, then both our jointly-owned and my personal deposits will remain below the CDIC limit.
For CRA taxation, I want the GIC to be jointly-owned at maturity next year. This is why I want to delay the conversion until much closer to the maturity date.
2:51 pm
February 7, 2019
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anon52 said
Over the years I have purchased many jointly-owned GICs online at Oaken and Hubert without having to make a phone call, as cgouimet has described.However, if I convert my current Tangerine GIC to joint ownership at this time then our jointly-owned deposits at Tangerine will be over the CDIC limit of $100,000. If I keep the GIC in my name only, then both our jointly-owned and my personal deposits will remain below the CDIC limit.
For CRA taxation, I want the GIC to be jointly-owned at maturity next year. This is why I want to delay the conversion until much closer to the maturity date.
Technically, taxes are deemed earned and taxable during the term of the GIC, not just when it is finally collected at the end of the term...
| CGO |
2:53 pm
February 7, 2019
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cgouimet said
Technically, taxes are deemed earned and taxable during the term of the GIC, not just when it is finally collected at the end of the term...
Correction ...
Technically, interest is deemed earned and taxable during the term of the GIC, not just when it is finally collected at the end of the term...
| CGO |
4:33 pm
December 2, 2021
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The GIC was purchased from our joint savings account with joint monies, so the interest earned should be declared as joint income on our income tax returns. It was Tangerine that opened the GIC in my name only.
As long as the earned interest is declared as joint on our income tax returns for next year, I don't see why I can't hold the GIC in my name only until I convert it to joint ownership just before maturity, when the interest will be paid.
The income tax only becomes due after the interest is paid out at maturity.
4:43 pm
February 7, 2019
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anon52 said
The GIC was purchased from our joint savings account with joint monies, so the interest earned should be declared as joint income on our income tax returns. It was Tangerine that opened the GIC in my name only.As long as the earned interest is declared as joint on our income tax returns for next year, I don't see why I can't hold the GIC in my name only until I convert it to joint ownership just before maturity, when the interest will be paid.
The income tax only becomes due after the interest is paid out at maturity.
That's not the way it works ...
| CGO |
7:38 pm
April 6, 2013
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Why bother?
If half the funds in the GIC is from spouse, then half the interest will be attributed back to and taxable to the spouse anyways under attribution rules.
8:55 pm
October 21, 2013
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I wondered about that too. The reason to bother seems to be to enable maximum insurance through CDIC for longest possible time through judicious use of joint and single investments.
9:12 pm
April 6, 2013
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Legal title affects CDIC insurance coverage. But, legal title does not affect income tax attribution.
Doesn't matter for tax purposes if someone has an individual GIC instead of a joint GIC. If part of the funds of the individual GIC came from spouse, without a prescribed loan, then interest on that part of the GIC funds is attributed back to the spouse.
2:38 am
November 18, 2017
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If a GIC term is longer than one year, the accrual rules say that the amount of interest that would be compounded OR paid out becomes taxable interest at either payout date (if terminating in that year) or at the deposit's anniversary. So waiting until the end of a term will only affect ownership of interest if it's a one-year or shorter term.
But the attribution rules are a safer bet without risking going over the CDIC limits. I'm not as well versed in them compared to the accrual rules, though, because I've never had financial involvement with another person.
RetirEd
RetirEd
3:10 am
October 5, 2017
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From the CRA website :
Term deposits, guaranteed investment certificates (GICs), and other similar investments
Interest builds up over a period of time, usually longer than one year, on these types of investments. Generally, you do not receive the interest until the investment matures or you cash it in.
For example, interest on a compound GIC is earned on a monthly basis and is automatically reinvested, earning compound interest until the bond is cashed or matures. Interest on a compound GIC is paid when the investment is cashed, and not annually.
The income you report is based on the interest you earned during each complete investment year.
For example, if you made a long-term investment on July 1, 2020, report the interest that accumulated up until the end of June 2021 on your 2021 return even if you do not receive a T5 slip. Report the interest from July 2021 to June 2022 on your 2022 return.
4:37 am
April 6, 2013
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Complete investment year reporting applies when the interest is contractually compounded annually or less frequently.
Simplii GIC's compound monthly. Interest from them is reported and taxed as it is compounded, like a savings account.
4:56 am
September 11, 2013
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Rules, schmules. As I've said here before what CRA, its lower level agents and its computer are really looking for is that the T5 slip reported to them by the bank matches the year, SIN and amount that is reported by the receiving taxpayer. If there's a discrepancy and the amount is enough you'll get a notice a year or so after filing your return and they'll want an explanation. That's something I avoid, I always give them whatever their computer expects.
Financial institutions normally issue one T5 for joint bank accounts, issued in the name and SIN of the primary holder, not sure if they do the same for joint GICs, not sure I've ever had one of those so far outside of a joint brokerage account (in which case the SIN for primary account holder was used for the various GICs in the brokerage account).
5:15 am
February 7, 2019
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Bill said
Rules, schmules. As I've said here before what CRA, its lower level agents and its computer are really looking for is that the T5 slip reported to them by the bank matches the year, SIN and amount that is reported by the receiving taxpayer. If there's a discrepancy and the amount is enough you'll get a notice a year or so after filing your return and they'll want an explanation. That's something I avoid, I always give them whatever their computer expects.Financial institutions normally issue one T5 for joint bank accounts, issued in the name and SIN of the primary holder, not sure if they do the same for joint GICs, not sure I've ever had one of those so far outside of a joint brokerage account (in which case the SIN for primary account holder was used for the various GICs in the brokerage account).
All joint accounts result in T-Slips with one SIN, that of the primary holder, and with the names of the primary and secondary holders.
| CGO |
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